Investment Process - Stock Selection
initial Screening
Initial Investment screen based upon: 1) Dividend Growth Rate, 2) Dividend Yield, 3) Dividend Payout Ratio, 4) Dividend History, 5) Revenue Growth (low / no dividend companies)
Secondary Screen
Secondary screen to exclude anomalies (acquisitions, divestitures, etc.), secular challenges, and incomplete data.
Initial Research
Begin company and industry background research such as: (Conference Calls, 10-K/10-Q, Investor presentations, Quarterly results
Fundamental Analysis
Build Income Statement, Balance Sheet, and Cashflow models. Determine revenue, earnings, and cashflow variances to consensus estimates. Determine upside / downside price targets.
Investment Thesis
Create Investment Thesis with 2 or 3 key items to track. Build position size on thesis confirming news. Reduce or eliminate position based on thesis compromising news.